Assume Nothing About the Global Events Industry

shanghai-tradeshow-imagdeI certainly expected to hear some opposing voices in response to my Oct. 19 post remarking that forces at play in the world are likely to cause at least a stutter for the global exhibitions industry.

Some of those who wrote quite reasonable responses not only have every right to object to my view, but almost a responsibility to signal to their clients, “Don’t worry, everything’s fine.”

However, even those of us who live within the cocoon of American culture cannot ignore the reality that, all over the world, nationalism is on the rise and free trade has become one of its adherents’ easiest targets. We see it here as the U.S. presidential election campaign staggers to an end.

So, those who are most entrenched in the international exhibitions industry, as they gather next week for the UFI Global Congress in Shanghai, can’t take much comfort in the recently released American Express Global Meetings and Events Forecast citing “political and economic uncertainty coupled with safety concerns in some countries.” The report from one company that has something to lose as a result admits, “we are seeing some hesitancy in our industry.”

The report, though, goes beyond the current international political and economic climate to cite three factors that could have a longer, more serious impact on the global meetings industry:

  • Hotel consolidation
  • Security and safety concerns
  • Confusion about the proliferation of event technology

All of which the beleaguered international event organizer has little or no control over.

There are a couple of things you can control, like that growing proliferation of technology. Organizers are starting to take advantage of data accumulation and analysis tools to better identify the needs of potential attendees and then share that information with exhibitors.

There is no reason to assume traditional marketplaces will remain static as the forces American Express suggests come into play. Instead, you can probably expect them to disrupt the conventional patterns of buyer-seller interactions. However, armed with real information, regardless of where you are, you can communicate the value of your event and the urgency with which potential attendees and exhibitors should approach it.

Assume nothing.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhrt3@gmail.com. Hart will moderate a webinar Nov. 30 for association executives entitled, “4 Easy Ways to Generate Non-Dues Revenue.”

No Fields Found.

Why Association Show Organizers Are So Frustrated

cropped-OTC-image.pngI spoke this week to the organizer of one association show who knows why his show is declining in revenue, attendance and significance to its industry. He knows why a for-profit upstart could come in and steal whatever enthusiasm is left in his industry for an event – and there’s nothing he can do about it.

Many association managers today find themselves stuck between the proverbial stone and a hard place. They recognize the realities of the events industry today. They know that overall association membership is declining because its relevance to members is dwindling.

They understand their faithful audiences have many more ways to connect with potential partners and learn what they need to know to do their jobs better. They also understand how more nimble players can swoop in and launch a competing “pop-up,” worrying little about legacy issues and more about profits.

That’s their stone. Their hard place is a board of directors that doesn’t get it, the board that’s a legacy itself and doesn’t understand why attendance at the show and revenue are declining – when, from their point of view, nothing else has changed.

We all know how hard it can be to tell a boss he or she doesn’t know how much they don’t know.

Start this way: Ask your board to review its event goals. And don’t let them say, “That’s your problem.”

Is their primary goal to make money with the annual show? Is their No. 1 priority to get as many members there as possible? Do they want to use the annual event as a vehicle to deliver messages to a larger audience about the industry?

Is their best answer, “Because the bylaws say we have to have to”? (If it is their answer, you’re really in trouble.)

To a certain extent, it doesn’t matter what their answer is, as long as it gives you an opportunity to explain why you’re not accomplishing their goal now – and what you’ll have to change to do so.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

No Fields Found.

Is Digital Still the Biggest Threat to the Old-Fashioned Trade Show?

facebook-imageYou event organizers out there, tell me you didn’t gloat a little when you say the news that Facebook had overestimated the time people looked at video ads by as much as 80 percent.

Tell me you didn’t send a link of that story to your anchor exhibitors who told you they were cutting back on your show to devote more of their marketing budget to digital because they could MEASURE THE RESULTS!

When Grant Leech, vice president of brand management for U.S. Cellular talked to the Wall Street Journal, he asked rhetorically, “Are we getting real value for what we are buying?”

Which is exactly what your customers are asking you, right? Remember ROI?

But don’t get too giddy too fast. Digital marketing is a $149 billion business and is not going anywhere.

This, however, is evidence there are chinks in its armor and room for you – if you can demonstrate that you can deliver leads in a way digital can’t.

The lack of promised data on results is what has marketers upset about digital. That means to compete you need to make sure you can provide that data to your customers that tells them your event can deliver the buyers they’re looking for.

Get busy making the case – with facts and figures – that you have what your exhibitors are looking for.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

Associations Look Their Event Gift Horses in the Mouth

association-showsGenerating non-dues revenue is quickly becoming a problem for association executives. According to Bob James in his blog post last week, 54 percent of association executives said that in Naylor’s 2016 Association Adviser Communications Benchmarking Report. The killer is that same figure was only 11 percent a year ago.

Dig a little deeper into the report and you come up with some even more interesting findings:

90 percent of association executives believe events are their best channel of communication with both members and non-members. However, they also report that only one out of five members are repeat attendees at their annual events.

And, they admit, they’re not really trying too hard to turn that around either. Fifty-seven percent of association executives said they need to do a better job of “customizing” messages they send to both members and non-members and nearly half (48 percent) said they take a one-size-fits-all approach when it comes to customizing event sponsorship packages.

It’s becoming clearer every day that associations and their events could easily become tomorrow’s basket cases. Lulled into believing their events would pay the bills while association executives ran them on autopilot, they have been slower to heed the call for change than their for-profit colleagues.

Bob’s suggestion in his post is that associations work a little harder to diversify their revenue streams (e.g., rent membership lists, sell sponsorships to nonendemic sponsors, etc.) – and that might help in the short term.

In the long term, they’ve got to do something about that statistic that indicates only one out of five of this year’s annual meeting attendees will be back next year. If an association can’t even once a year supply its members with a venue where they can do business and learn about the industry that represents them, what are they there for?

The strategy should be to not look further afield, but to dig deeper – deep enough to identify what members want and give it to them immediately.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

 

Remember the Once Mighty Offshore Technology Conference?

OTC imageAccording to CEIR’s latest quarterly report, the tradeshow industry’s recent sluggish growth rates can be tied to volatility in the larger economy.

Most of the time, I would take a jaundiced view of such a statement and suggest that it’s a lame gesture to find somebody else to blame bad news on. This time, however, it sounds right.

Most metrics and sectors in the CEIR second-quarter report are up, if not as much as we’ve come to expect. Two declines stand out, they’re probably connected, and they point to how vulnerable the events industry can be to external forces.

First, tradeshow attendance is down a bit, 0.2. percent. However, in the raw materials and science sector – aka the oil industry, among others – attendance was down 20.4 percent. In fact, if oil industry shows had just been able to hold their ground and maintain the same attendance as last year, the overall attendance metric would have been up 2.4 percent! The combined metrics for the raw materials and science sector point to a 9.2-percent decline over the same quarter last year.

Remember a few years ago when you’d go to an industry event and the organizers of oil business events were the stars of the show? How the mighty have fallen.

Look at numbers for the annual Offshore Technology Conference (OTC), year in and year out the largest oil industry show. In terms of exhibit sales, they’re not doing so bad yet, even as slumping energy prices have walloped their industry. The number of exhibiting companies has held steady over the last three years and square footage only fell from around 700,000 net square feet in 2015 to 672,000 net square feet this year.

But look at attendance: 108,300 in 2014, 94,700 in 2015 and 68,000 this year!

If the seemingly indefatigable events industry has an Achilles’ heel, it’s attendance. It gets even worse for association shows like OTC, owned by the Society of Petroleum Engineers. Associations aren’t just worried about event attendance; many have problems even holding on to their members.

I know we like to blame millennials for the decline in association participation and whine, “They’re just not joiners.” But it’s more serious than that.

Associations, stuck with a mindset that what worked in the past is just fine for now, are finding it hard to adjust to a new environment where attendee-members expect more than a noisy exhibit hall and a cocktail reception out of their annual event. They want to look back at the three days they invested in and literally count the number of new leads they got, the number of new potential partners they lined up.

And if they can’t do that, not only will they think twice about registering for next year’s show, they won’t even send a check for their association dues when the bill comes at the end of the year.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.